Land Securities end of year profits up 14.8%

Land Securities has this morning announced its financial results for the year ended 31 March 2011, with an increase in profit of 14.8% before tax.

Highlights of 2010 include the opening of One New Change, EC4, (pictured) providing retail and office space in the City of London. The retail element of the scheme is fully let and only 27% of office space remains available.

On site at 1.3m sq ft of development projects in London, Land Securities is currently developing two office space schemes in Victoria at 123 Victoria Street, SW1, and 62 Buckingham Gate, SW1, in addition to its developments at 110 Cannon Street, EC4, and 20 Fenchurch Street, EC3, which between them will create 827,744 sq ft of new office space in the Square Mile.

The development of a further 375,122 sq ft of office space in Central London is planned to start in 2011/12 at 30 Old Bailey and 60 Ludgate Hill, EC4, and there exists an additional 3,354,572 sq ft of development opportunity in the pipeline with planning consents obtained or planning applications submitted.

The UK’s largest REIT enjoyed growth in its asset management initiatives with £31m of investment lettings in the year, £10m of conditional lettings and £11m in solicitors’ hands. It completed on significant new leases on offices in London with News International, Bain & Co and, conditional on planning, Telecity

Commenting on the results, Land Securities Chief Executive Francis Salway said: “This was a year of continued recovery in our market and strong progress by Land Securities. Our focus on development, our disciplined approach to acquisitions and disposals and our asset management activities have all delivered significant momentum across the business.

“In London, we are developing schemes to meet the anticipated under-supply of new office floor space, which may be even more acute than originally forecast. 

“We remain of the view that our markets are in recovery mode and we see particularly strong growth prospects in London over the next few years. We may continue to see ripples in prices, but we go into the new financial year confident in our plans and well positioned to address growth opportunities. By restarting development first, we signalled our intention to be proactive in driving returns as the market turned. Our strong balance sheet, access to capital, excellent occupier relationships and property skills equip us to create value in this market. Our focus is on turning these strengths into strong and tangible returns for shareholders.”